Indian Perfume Industry In The Next 5 Years

 

In the Indian subcontinent, we are seeing an increasing shift in consumer outlook on perfumes and fragrances being regarded as more of a necessity in their everyday personal care routines. This shift can be attributed to rising interest in personal care/hygiene and increasing disposable income leading to higher demand from the middle class.

Deo and Body sprays still dominate the Indian Perfume market as they are seen as the most affordable and accessible solution to the stinky problem. Perfumes are still considered premium and are more so for use during special occasions. Brands should be attributed a lot of the credit in terms of building this role of fragrances in personal care. The perfume market specifically is seeing a lot of growth in revenue generation through the use of e-commerce platforms such as Amazon and Flipkart. Most consumers these days make informed decisions on perfume purchasing by researching on websites, blogs, and social media platforms. The increasing traffic to and use of e-commerce platforms during the pandemic has led to substantial growth in the industry.

There has been a 20.03% growth in this market in 2022 alone, and it is predicted to grow by USD 1.02 billion by 2026. However, the momentum is expected to decelerate at a CAGR of 14.89% as per the latest report by Technavio. The Indian perfume market still holds a small chunk of the $24 billion global markets, India’s being only $500 million while the USA dominates the market with a whopping $8.3 billion market share.

The Indian perfume market is lucrative for global perfume brands as it is a country that is rich in natural resources that are hard to find elsewhere. Indian sandalwood is superior to others, it’s creamier and the aroma is smoother sandalwood is considered to be the king of fragrances when it comes to ingredients hence impossible to ignore. We have seen a meteoric rise in Indian fragrance brands in recent years although this has mostly taken place in the Deo and Body spray segment of the market as the Indian brands have been able to compete due to their competitiveness in prices and attracting the affordable segment of the market. Perfume brands like 3003BC and Ajmal perfumes have been able to penetrate the Indian market due to their motto which is providing affordable luxury perfumes better known as Inclusive Luxury. These brands are only a slice of the brands providing the luxurious perfume experience to the wider market. As brand awareness and use of perfumes increase amongst the Indian population, perfumes will be able to make a significant breakthrough in this niche fragrance industry.

We are currently in a very exciting time of the fragrance industry, looking at a substantial growth cycle in the next 5 years and the players already in this upward wave will be able to capitalize on this if they know how to sail their boats the right way.